FISCAL MANAGEMENT

ALL ABOUT FISCAL MANAGEMENT

1. LOCAL FISCAL MANAGEMENT Report by: MELISSA BAYLON-PERLAS Subject: Theory and Practice in Public Administration

2. WHAT IS FISCAL MANAGEMENT? Is the process of planning, directing and controlling financial resources of an organization. Refers to money within a government entity It is the process of keeping an organization running efficiently within its allotted budget. This Photo by Unknown Author is licensed under CC BY

3. FISCAL MANAGEMENT GOALS To maintain fiscal records and procedures that provides protection for the resources as well as records which generate economy, effectiveness and efficiency of the operation that relate to the budget of the agency. To improve the way agency operates by properly planning, recording and performing procedures that relate to the budget. This involves a variety of tools, including budget spreadsheets, accounting, and guides outlining procedures for an agency. This Photo by Unknown Author is licensed under CC BY-SA

4. AREAS OF FISCAL MANAGEMENT Procurement of Funds – it is the process of finding and acquiring goods, services or works from an external source Allocation of funds – the process of fair distribution of funds assigned to a particular item Monitoring their use in the interest of accountability - to be responsible for their actions and decisions, and having the obligation to report about it anytime Producing financial reports for the relevant stakeholders - refers to an openness with regards to finance matters This Photo by Unknown Author is licensed under CC BY

5. FISCAL MANAGEMENT PROCESS Planning the budget Formal review and approval of the budget Implementing the budget Monitoring and evaluating the expenditure of funds Communication with the public about how funds are used This Photo by Unknown Author is licensed under CC BY-SA

6. what is the importance of fiscal management?

7. Characteristics of fiscal management POOR FISCAL MANAGEMENT – indicated by a lack of record-keeping and unnecessary or unplanned expenditures that can cause a department to go over budget or fail to meet its objectives GOOD FISCAL MANAGEMENT – involves recording all fiscal transactions in checks- and-balances system that reduces mistakes or omissions that might lead to surprise budget overages This Photo by Unknown Author is licensed under CC BY-SA

8. Fiscal managers should ensure that: All financial regulations and procedures are complied with. All financial transactions are recorded accurately. Adequate controls are in place to ensure that expenditures do not exceed income Only authorized expenditures are incurred

9. Government procurement reform act – ra9184 ( R.A. )  9184 , otherwise known as the “ Government Procurement  Reform  Act ,” for the purpose of prescribing the necessary  rules  and regulations for the modernization, standardization, and regulation of the  procurement  activities of the  Government  of the Philippines ( GoP ).

10. principles Transparency Competitiveness Procurement process System of accountability Public monitoring

11. 5 FISCAL MANaGEMENT TECHNIQUES Regular cash flow management Most businesses are not able to forecast their cash flow, which reduces their ability to anticipate shortfalls in the future and correct them. To improve your financial position, it is significant to spend time on regular management and analysis of cash flow.  Timely & accurate financial statements It is seen that the preparation of financial statements is often outsourced and used mainly for the purpose of tax computation. Creating timely, accurate and relevant financial statements can help in decision making and validating those decisions.  Key Financial Indicators In today's economy, you need to be proactive in ascertaining your business' financial position and knowing whether things are going according to plan. KPIs make life a lot easier by signalling the pace of your business and telling whether your products and sales are doing what they should.. This Photo by Unknown Author is licensed under CC BY-SA-NC

12. 5 FISCAL MANGEMENT TECHNIQUES  Realistic Operating Budget In today's dynamic environment, your operating budget is your measurement tool for success. It drives pricing and profitability, and therefore has to be realistic and meaningful. Updated Systems & Processes Having proper systems and processes in place helps run things in the fastest, most effective and efficient way possible. Vital financial procedures can be reviewed for credit, billing and collection. Updated systems can help avoid repetitive and time consuming activities and speed things up which invariably contributes to improved financial position of a business. This Photo by Unknown Author is licensed under CC BY-SA-NC

13. WHO CAN DO THIS??? A good Finance Team has to work to implement standardization to reduce costs and result in profit maximization. So, Taking care of these factors gives improved financial position by ensuring futuristic planning and security through longer time frames.

14. THE END